Now Reading: India, Indonesia discuss preferential trade deal to boost commerce
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India, Indonesia discuss preferential trade deal to boost commerce
Indonesian Trade Minister Budi Santoso met Indian Commerce Minister Piyush Goyal in Jaipur on August 7, on the sidelines of the BRICS Trade Ministers' Meeting, to discuss accelerating trade cooperation, market access,…
The Story in Brief
Indonesian Trade Minister Budi Santoso met Indian Commerce Minister Piyush Goyal in Jaipur on August 7, on the sidelines of the BRICS Trade Ministers' Meeting, to discuss accelerating trade cooperation, market access, and investment. They reviewed progress on the ASEAN-India Trade in Goods Agreement (AITIGA) review, aiming for a 2026 conclusion. Indonesia supports a simpler, business-friendly outcome and has submitted phased market access offers covering 57% of the 80% liberalisation target.
The ministers also explored a bilateral preferential trade agreement to complement existing pacts. In the first half of 2026, bilateral trade stood at US$11.89 billion, with Indonesia recording a surplus of US$6.68 billion. Total trade in 2025 was US$23.13 billion, with Indonesia's surplus at US$13.46 billion. Indonesia's key exports to India include coal, palm oil, and stainless steel, while India supplies buffalo meat, peanuts, and vehicles.
The Indian Opinion
The talks signal a pragmatic shift, but some narratives paint Indonesia as reluctant. In fact, Jakarta has raised its AITIGA liberalisation offer from 41.9% to an ambitious 80% target. The proposed bilateral PTA shows both sides want more than slow multilateral progress. The real test will be whether the 2026 deadline holds and if non-tariff barriers actually come down for Indian buffalo meat and auto parts.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
